REL lowers price, bags DVC contract

To construct power plant at a cost of Rs 3,725 cr

NEW DELHI: Reliance Energy Ltd (REL) has bagged a Rs 3,725-crore contract for Damodar Valley Corporation (DVC) after it agreed to bring down the project cost.

The company was the sole bidder for Raghunathpur power plant in West Bengal and had earlier quoted about Rs 4,800 crore for the job.

DVC awarded the contract for coal-based power project to REL on engineering, procurement and construction basis. “The contract valued at Rs 3,725 crore has been bagged by Reliance Energy’s EPC division through international competitive bidding. It will be implemented in an accelerated schedule of up to 38 months,” company said.

REL sources had earlier told DNA Money that the company had, in tie-up with Shanghai Electric Company, quoted roughly Rs 4,800 crore for the EPC contract. Sources said the company was asked to match the price for Hisar contract which REL is implementing. DVC chairman Ashim Kumar Barman told DNA Money, “REL agreed to bring down the price and make it comparable to Hisar.”

Haryana Power Generation Corp Ltd in January 2007 awarded a contract on the basis of a competitive bidding to Reliance Energy for setting up 2x600 m coal-based power project on turnkey basis.

jyoti_m@dnaindia.net